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Pricing Strategy in Netflix

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This assignment, you have to analyze the case study and answer these questions.

Please follow the assignments’ requirement and write down these questions’ answers in the body.

All of the sources are should from internet, no from books, Thanks.

Netflix Case Questions

1. Would YOU have been "long" or "short" ( meaning bullish/positive or bearish / negative) on their strategy) at the time of the case for:

a. Blockbuster

b. Netflix

Why?

2. Did Netflix do the same jobs for consumers that Blockbuster did? How did this evolve over time?

3 .Compare Blockbuster’s and Netflix’s profit models. How might the differences affect the respective company’s strategies?

4. As you examine each major shift in Netflix’s strategy, what might have been assumptions that they may have used at EACH stage?

5. What assumptions checklist would YOU use for Video on Demand (VOD). ?

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Description

Netflix and Blockbuster are two major players in the movie rental business. Their core business has been built around providing consumers with movie rental services.  With time, movie production and viewing technology has been changing with the advance in technology. In this case study, the intense strategy war between Netflix and Blockbuster comes to the fore.

Theory

There are different theories that can be used to analyze the marketing strategies taken by companies. The most important theory in marketing is game theory. Game theory postulates that firms are rational utility maximizers (Dominici, 2011). This means that most companies will put efforts in achieving the outcome that is most favorable and that will increase their sales.  According to Dominici (2011) this theory also argues that their rivals will take same strategies in replying to what firms are doing.

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